Question

Turner, Inc. began work on a $5,810,000 contract in 2014 toconstruct an office building. During 2014, Turner, Inc. incurredcosts of $1,411,000, billed its customers for $996,000, andcollected $796,800. At December 31, 2014, the estimated futurecosts to complete the project total $2,739,000. Prepare Turner’s2014 journal entries using the percentage-of-completion method. (Ifno entry is required, select “No Entry” for the account titles andenter 0 for the amounts. Credit account titles are automaticallyindented when the amount is entered. Do not indent manually. Roundanswers to 0 decimal places, e.g. 5,275.)